A 10-year public project that required $1.5 million generates annual revenue of $0.2 million beginning from year 1. What is the project's rate of return on its investment?
A)5.6%
B)6.6%
C)7.6%
D)8.6%
E)9.6%

Question

Quizplus · Accepted Answer

The project's rate of return on its investment is 5.6%. This is calculated by dividing the annual revenue of $0.2 million by the initial investment of $1.5 million and then multiplying by 100.

A 10-Year Public Project That Required $1